BURBANK, CA—Granite Properties has acquired a class-A office building from Legacy Partners Realty Fund I for $49 million. The sale of the property attracted nearly 10 offers from institutional investors.

Located at 2600 West Olive in Burbank's Media District, the 10-story, 150,000-square-foot property is 87% leased to media-related companies, and no tenant occupies more than 15% of the building. Prior to selling the property, Legacy Partners Realty Fund I completed several improvement renovations to the common areas, like the main and upper lobbies and restrooms, as well as to the parking structure.

“Because the property is 87% leased to a variety of media related companies, it provides the buyer income stability and the ability for the new ownership to benefit from anticipated rent growth in area,” Kevin Shannon, a broker at CBRE, tells GlobeSt.com. Shannon represented the seller along with his CBRE colleagues Tom Bolinger, Ken White and Mike Longo. 

In addition to the strong occupancy and fresh renovations, investors were also attracted to the building's Burbank location. “Capital is attracted to Burbank due to its strong historical fundamentals and growth projections supported by a strong depth of media-related companies, including major film studios like Disney, Warner Brothers, NBC/Universal Comcast and DreamWorks,” says Shannon.

Because capital is drawn to the area, office properties tend generate attractive prices. Earlier this year, for example, a joint venture between PCCP LLC and the Worthe Real Estate Group acquired the Tower Burbank, a completely vacant office property formerly occupied by Disney, for $109 million.